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Air Handling Units Market

Air Handling Units Market

Global Industry Analysis (2018 - 2021), Growth Trends, and Market Forecast (2022 - 2029)

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Industry: Healthcare IT | Author Name: Sayali

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Preliminary research of Fairfield Market Research indicates a promising growth outlook for global air handling units market during the course of next few years.

Air Handling Units Market Receives Tailwinds from Growing Replacement Rate of Aging HVAC Equipment

One of the main elements boosting air handling units market expansion is the rise in industrialization, and urbanization. Air handling units, a type of space heating and cooling system, are in high demand due to the worldwide expansion in the construction of various commercial and residential buildings. The global need for energy-efficient HVAC systems is another factor driving the market. The trend of replacing outdated HVAC equipment, particularly air handling units, with more efficient models is anticipated to increase in the commercial, residential, and industrial sectors to meet the various energy conservation targets established by many nations.

For instance, the International Energy Conservation Code, passed in 2021, mandates that large buildings with 100,000 square feet or more adhere to its procedure. The standard requires that buildings use fault detection and diagnostics (FDD) systems to find problems with HVAC operation quickly. Given the ongoing innovation, such laws raise the likelihood of HVAC replacements. The air handling units market, including that of AHUs, relies heavily on industries like construction, governmental restrictions, and new initiatives launched by governments of various regions to strengthen the infrastructure and industrial and manufacturing sectors. Any changes in the commercial and industrial sectors would inevitably directly influence the demand for these systems and may limit market expansion.

Air Handling Units Market: COVID-19 Impact

Due to the lengthy lockdown enacted internationally and the shutdown of manufacturing facilities in the first quarter of 2020, the COVID-19 pandemic had a detrimental effect on the market's growth. Additionally, the market growth was significantly influenced by stopped manufacturing processes, construction-related activities, and disruptions in raw material supply chains. For instance, from 2019 to 2020, Carrier Corporation's net sales decreased roughly -6.2%. The demand for air handlers is anticipated to increase during the forecast period due to the demand for these products in both the residential and commercial sectors. Revenue earned during 2020 increased significantly for the top participants. However, it is anticipated that the increased need for hospital beds will support the demand for these systems, supporting market expansion. Additionally, it is anticipated that the air handling units market will develop in the next years due to an increase in work-from-home policies enacted by major firms.

Technological Advancements Accelerate Air Handling Units Market Growth

To increase market competition, prominent firms are now concentrating on creating and releasing technologically advanced AHU systems, including systems based on AI, IoT, and the integration of sensors. For example, Trox GmbH unveiled X-Cube AHU units for household, business, and industrial use. It can move 1,200 M3/h to 100,000 M3/h of air. It offers qualities like great energy efficiency, cleanliness, and simplicity of installation. In addition, Zeco Aircon Ltd. introduced the Smart AHU Unit in April 2022, which has an integrated control system. It works best in residential, business, and industrial settings. Additionally, it is projected that during the projection period, IoT within these kinds of systems would offer attractive potential for market expansion. To increase the effectiveness of these systems, IoT is used to collect data and store it online. These machines have adopted new technological developments in recent years. These are the key trends that will drive the expansion of air handling units market.

Growing Need for Maintenance of Air Quality Across Industrial and Commercial Environments Boosts Air Handling Units Market Growth

Rising urbanization, and increasing population are some important factors expected to surge the demand for these products and fuel the air handling units market growth. In addition, increasing construction-related activities globally is creating significant demand for these products. In addition, approximately 55% of the global population lives in urban areas. The urban population is expected to increase to 68% by 2050. This is projected to increase commercial and residential construction activities, which will surge the demand for air handlers. Government programs such as the "Nation Program on Strategies for Sustainable Smart Cities" and the "National Infrastructure Program" for building new homes and businesses also increase the need for air handlers. The market is expanding due to increased consumer knowledge of the advantages of these systems, such as the maintenance of fresh air quality in commercial and industrial environments, which is driving demand for these products.

High Installation and Maintenance Costs to Impede Expansion of Air Handling Units Market

Large initial outlays of money, and high maintenance costs are obstacles to the air handling units market expansion for air handling devices. For instance, the cost of air handling systems might range from US$25K to US$500K, depending on the user. Inspection, installation, sensor integration, and aftermarket solutions are the associated charges that raise the total ownership cost of these products. Additionally, lesser-priced units will be purchased by both residential and commercial end users, which limits market expansion. It is projected that these factors will impede global market expansion.

Packaged Category Dominates Air Handling Units Market in Light of Expanding Cold Chain

The packaged category held the largest market share. It is anticipated that it will continue to rule the market during the forecast period due to increased urbanization and industrialization, growing cold chain demand, and other factors expected to drive demand for these goods. At the same time, many major firms are expected to develop these kinds of products, which will cause the bespoke segment to experience significant growth. These goods have toughness, ease of installation, and lengthy durability. Major manufacturers, including Johnson Controls International Plc, and Daikin Industries Ltd. offer custom air handlers. These occurrences are expected to accelerate air handling units market expansion.

Commercial Segment Spearheads Air Handling Units Market as Demand for Packaged Units Soars

The commercial category held the largest market share, and it is anticipated that it will continue to rule the air handling units market during the forecast period. A growing demand for packaged air handling units has emerged in recent years from the commercial application segment, including hospitals, office buildings, data centers, universities, laboratories, and server rooms. This is due to the expansion of various infrastructure-related developments across many nations. The HVAC system utilized in commercial buildings must have an air handling unit. The air that enters a building from the outside is controlled and circulated to be heated, cooled, and filtered as necessary. A single room or a whole building might use air handling systems due to their huge size and capacity changes. When used for a commercial-sized building, they are frequently located either in the basement or roof. In commercial office buildings, the air handling unit is crucial since a malfunctioning AHU can reduce productivity and make the occupants uncomfortable.

Asia Pacific Dominant in Air Handling Units Market in Line with Rapidly Expanding Industrial Sector

Over the forecast period, it is anticipated that the Asia Pacific air handling units market will account for the largest revenue share. One of the key drivers of the market expansion in the Asia Pacific is the region's quickly expanding industrial sector. The need for air handling units is anticipated to rise due to the growing commercialization and population growth in several developing nations in the Asia Pacific region, including Taiwan, Australia, Thailand, India, and Australia. Due to factors like increasing consumer spending power and disposable income, as well as increased investments in infrastructure development, the industry in India is expanding quickly. A growing emphasis on energy-efficient HVAC systems is also present in the area. For instance, the Ventus Pro series of air handling systems, introduced by VTS Group in June 2022, optimizes interior air quality by regulating temperature and humidity. The series offers considerable energy savings while performing flexibly and ecologically responsibly.

North America’s air handling units market is anticipated to experience stable revenue growth throughout the forecast period. The region's market is anticipated to increase due to government efforts that encourage using energy-efficient equipment by providing tax breaks and subsidies. Furthermore, the its market is projected to grow due to the increased focus on creating creative air-handling units. Consumers can now upgrade their outdated systems with the advent of modern, creative, and energy-efficient air-handling devices. The market is expected to increase due to the increasing number of infrastructure projects and the growing concern over air quality.

Global Air Handling Units Market: Competitive Landscape

In December 2021, to further strengthen its position in North America, Daikin announced the acquisition of two HVAC wholesalers with locations in Washington, DC: Thermal Supply, Inc. and AirReps, LLC. Similarly, in March 2021, new high-wall ductless system models from Carrier include the multi-poise 40MBAA air handler, the 40MAHB interior unit, and the 38MARB outdoor unit. The 40MBAA is offered in capacities 24k, 36k, and 48k and features SEER ratings up to 20.0 and HSPF ratings up to 10.0.

A few of the players in the global air handling units market Barkell Ltd., Blue Star Limited, Carrier Global Corporation, Ciat Group, Daikin Industries Ltd., FlaktGroup, Hitachi Ltd., Holtop, Johnsons Controls International Plc, Lennox International Inc., Munters Group AB, Stulz GmbH, Swegon Group AB, Systemair AB, Trosten Industries Company LLC, VTS Group, and Wolf GmbH.

Global Air Handling Units Market is Segmented as Below:

By Type

  • Packaged
  • Modular
  • Custom
  • DX Integrated
  • Low Profile (Ceiling)
  • Rooftop Mounted
  • Others

By Capacity

  • <5,000m3/h
  • 5,001-15,000 m3/h
  • 30,001-50,000 m3/h
  • <50,001 m3/h

By Application

  • Commercial
  • Residential

By Region

  • North America
    • U.S.
    • Canada
    • Mexico
  • Europe
    • UK
    • France
    • Germany
    • Russia
    • Rest of Europe
  • Asia Pacific
    • Japan
    • South Korea
    • India
    • China
    • Rest of Asia-Pacific
    • Latin America
    • Middle East
    • Africa

Key Elements Included In The Study: Global Air Handling Units Market

  • Air Handling Units Market by Product/Technology/Grade, Application/End-user, and Region
  • Executive Summary (Opportunity Analysis and Key Trends)
  • Historical Market Size and Estimates, Value, 2018 - 2021
  • Market Value at Regional and Country Level, 2022 - 2029
  • Market Dynamics and Economic Overview
  • Market Size in Value, Growth Rates, and Forecast Figures, 2022 - 2029
  • Competitive Intelligence with Financials, Key Developments, and Portfolio of Leading Companies 
  • Regional and Product/Grade/Application/End-user Price Trends Analysis
  • Value Chain and Five Force’s Analysis
  • Regional/Sub-region/Country Market Size and Trend Analysis
  • Company Market Share Analysis and Key Player Profiles

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